As a businessman, knowing the situation in each country is a must before deciding to set up a company branch. Indonesia is one of the promising countries to build a business. If you have a plan to expand your business, doing business in Indonesia is one of the wise choices. However, as a foreigner who wants to do business in Indonesia, the first step you can do is research the market. What kind of business entity that should be built? Is the business entity should be in the form of a Limited Liability Company? Here glance information about Representative Office in Indonesia from Indo-Ned Consultancy.
Doing business in Indonesia-Indoned Consultancy
Representative Office (Kantor Perwakilan Perusahaan Asing)
Representative Office in Indonesia usually called KPPA. It is the abbreviation of Kantor Perwakilan Perusahaan Asing. By setting up a KPPA, every foreign investor will be able to do the research market. The legal basis of the Foreign Representative Office is the Regulation of Investment Coordinating Board of Indonesian.
The purpose of a representative office is for market research. Therefore, there are restrictions on their activities. Only as a supervisor, liaison, coordinator, and management of the interests of the company or its affiliated companies in Indonesia. Foreign Representative Office only allowed to sets in the capital city of Indonesia.
Representative Office Of Foreign Trade Company (KP3A)
Representative Office of Foreign Trade Company (KP3A) is an office hosted by an individual Indonesian or foreign national designated by a Foreign Company or a Joint Foreign Company abroad as its representative in Indonesia. The head of this business entity consists of one or more Foreigners or Indonesian citizens appointed by the parent company as Representative Executives in Indonesia. KP3A prohibited from carrying out trading activities and sales transactions, both from the initial level to completion such as submitting tenders, signing contracts, completing claims and other similar activities.
Representative Office Of Oil And Gas (KPPA MIGAS)
One of the Representative Office (KPPA) also for MIGAS or oil and gas business field. Representative Offices of Foreign Oil and Gas Companies (KPPA Migas) are offices established by foreign companies or a combination of foreign companies in other countries as their representatives in Indonesia, which are engaged in the oil and gas subsector. Similar to other representative offices, KPPA Migas obligated to have a KPPA Migas License from the Investment Coordinating Board (BKPM). This subsector must be accompanied by recommendations from the Directorate General (Dirjen) of Oil and Gas, the Ministry of Energy and Mineral Resources (ESDM).
Foreign Construction Representative Office (BUJKA)
BUJKA is a 100% foreign construction service company that is established under the laws of a foreign country and is domiciled and has an overseas head office conducting business in Indonesia by opening a Representative Office of a Foreign Construction Services Company. To be able to conduct business activities and open a foreign construction services representative office in Indonesia, BUJKA must obtain a Foreign Construction Services Business Enterprise License. The permission of the representative of the foreign construction service business entity was issued by the Investment Coordinating Board (BKPM).
Register Representative Office with Indo-Ned Consultancy
After seeing the explanation above, of course, you have got an idea of what the representative offices in Indonesia. There are many advantages to opening a representative office such as you can see the market's desires before you decide to open a company. Setting up a foreign company office in Indonesia is not as difficult as you think, because Indo-Ned Consultancy will assist you and we will realize your idea to establish representative office accordance with what you have in mind and with Indonesian law. Indo-Ned Consultancy always gives the best advice and solutions for your business in Indonesia and we will guide you to set up your company in Indonesia. If you need assistance and more information feel free to contact us anytime.